Miliband to unveil Regional Banks plan

14th March, 2013 8:53 am

A Labour Government would introduce a number of “regional banks” as partners of a British investment bank, Ed Miliband will tell the British Chambers of Commerce in a speech this morning. He’s expected to say:

“we don’t just need a single Investment Bank serving the country. We need a regional banking system, serving each and every region of the country.

“Regional banks, with a mission to serve that region and that region alone. Not banks that like to say ‘no,’ but banks that know your region and your business. Not banks that you mistrust, but banks you can come to trust.

“I am committed to turning that idea into reality during the next government. Because I am determined that One Nation Labour becomes the party of the small business and the entrepreneur as together we create a recovery made by the many and built to last.”

Speaking at 11.30 from Central Hall in Westminster, Miliband will also call for a complete overhaul of banking, highlighting the continued failure of banks to release capital investment to businesses even as other scandals continue – such as big bonuses at failing banks.

The speech follows up on many of the arguments made in Miliband’s Bedford speech last month – especially with reference to the future shape of the British economy and the need to invest in infrastructure now.

  • http://twitter.com/GordonMer Hmmph

    You mean, like “Building Societies”? Idiot.

  • JoeDM

    And where will the money come from to provide the capital assets for these new banks?

    Is this an example of “Lazy Labour” not thinking things through?

    • Brumanuensis

      Just sell off the BoE’s remaining gold stocks. They’re useless as it is, so why not put the money to better use.

      (Jaime won’t be happy with me, I know)

      • jaime taurosangastre candelas

        Quite the reverse, Brum. That much gold hitting the market all at once will artificially depress the price, as Gordon knows. Under the BofE rules, any gold sales need to be announced in advance, so even the most sleepy trader has a week of notice, and the price of gold collapses for a short time.

        (I would rather Britain kept the gold and got rid of both front benches with some form of intelligence test for those who wish to be Ministers – a better deal in the medium and long term)

        Just the time to buy some more sovereigns, legal tender in the UK, and tax and capital gains free as well. And after a couple of months, the price will be back where it always is, tracking in inverse proportion the destruction of value in fiat currencies.

        Gold has been useful for financial purposes for 3000 years. The pound sterling for rather less so.

        Famously, Gordon sold our Sterling-denominated gold and invested in Euros. It was the high point of his career. Since then, the Euro has depreciated against Sterling and the dollar (because the Euro is insanity in money form, even when measured against Sterling and the dollar, which are also both unreliable), and by 56% against gold.

        The man who persuaded him into this foolish action is now the Shadow Chancellor.

        • Brumanuensis

          “Under the BofE rules, any gold sales need to be announced in advance, so even the most sleepy trader has a week of notice”.

          That rule is certainly going to have to be amended.

          “Gold has been useful for financial purposes for 3000 years”.

          That’s also true of cowries, mind. Alas, the Cowry Exchange was shut down years ago due to becoming populated with shell companies ( http://www.youtube.com/watch?v=E0PIdWdw15U ).

          “Famously, Gordon sold our gold and invested in – Euros. It was the high point of his damned career. Since then, the Euro has depreciated against Sterling, the dollar, and by 56% against gold. Thanks, you Scottish fool”.

          He didn’t invest it solely in Euros nor was he alone in buying up currencies, instead of commodities. Hindsight is 20/20 after all. The Euro’s depreciation was not a widely considered hypothesis.

          • jaime taurosangastre candelas

            “The Euro’s depreciation was not a widely considered hypothesis.”

            Well, maybe not among “experts” or the “chatterati”, but it has always been likely to those with any common sense. What sort of fool reckons it is wise to shackle together wildly differing economies, with no ability to vary exchange rates, and with no ability to harmonise economic, fiscal or tax policies?

            I take no credit for that. Rather, I reserve my suspicion for any form of fiat currency, and given the lunacies of modern politicians across the west, recently culminating in the popular choice of a professional comedian in Italy as a “backlash”, I feel vindicated.

            Land in separate countries, food resources, and gold are far more likely to be worth something than one of our politicians’ empty promises.

          • Brumanuensis

            Speaking of Gold: http://www.guardian.co.uk/business/2013/mar/13/london-financial-sector-gold-market

            “Well, maybe not among “experts” or the “chatterati”, but it has always been likely to those with any common sense. What sort of fool reckons it is wise to shackle together wildly differing economies, with no ability to vary exchange rates, and with no ability to harmonise economic, fiscal or tax policies? Would you “buy” that?”

            Well no, but most of the Eurozone’s balance of trade problems came from the Euro being relatively over-valued, which drove up labour costs in the Mediterranean countries. I’m not defending the Euro, more arguing that devaluation wasn’t an natural side-effect.

            “Land in separate countries, food resources, and gold are far more likely to be worth something than one of our politicians’ empty promises”.

            But gold is very volatile and by no means guarantees price stability ( http://dshort.com/inflation/inflation-recessions-1872-present.gif ). There’s a reason most economists think its a terrible idea to have a gold standard and it’s not just economic group-think ( http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_cw1nNUYOXSAKwrq ).

          • jaime taurosangastre candelas

            Volatility is a measure over time. It depends upon your period of reference. My period of reference is 30 years, 10 years less than I expect to live from now. If your period of reference is 2 months, you will have a different view.

            Your little chart should have overlaid upon it the cost of gold in the local currency. It would go from near bottom left to near top right.

    • Redshift1

      Well there was 6bn of capital ready for the Green Investment Bank when Labour left office. The Tories swung the axe at it however – yet another example of them not thinking things through really.

      It could be paying back the economy bigtime. Instead we have basically every sane economist arguing we should create a British Investment which economically speaking is a very similar idea with broader scope.

  • jaime taurosangastre candelas

    Almost, but not quite. This time the money will come from taxpayers, and there would probably be no need to build up years of saving deposits to establish a record of credibility for a business wishing to borrow (because if there was, the policy would have little effect for many years, and that “does not work” in terms of instant policy and instant results).

    Perhaps Ed’s SpAD is too young to remember Building Societies.

    • http://twitter.com/blue_burmese blueburmese

      This time the money will come from taxpayers, and there would probably be no need to build up years of saving deposits to establish a record of credibility for a business wishing to borrow

      And what could possibly go wrong with the taxpayer lending money to businesses that the banks won’t touch?

    • Dave Postles

      Building societies still exist.

  • Brumanuensis

    Not quite sure why you need to be so vitriolic. Anything to help replicate the old building societies is a plus in my book.

Latest

  • News Reed warns over threat of further electoral slump amid council funding fears

    Reed warns over threat of further electoral slump amid council funding fears

    A Labour shadow minister has warned against assumptions that the party’s vote has “hit the bottom” and told colleagues they must speak up for England to a greater extent. Steve Reed, shadow minister for local government, said Labour must learn more from major councils which had managed to be “credible, relevant and win elections”. Reed, a former Lambeth council leader, also warned that the party leadership “feels out of touch”. “I wish the Labour party could speak for England in […]

    Read more →
  • News Maria Eagle accuses Cameron of breaking Leveson promise

    Maria Eagle accuses Cameron of breaking Leveson promise

    Labour is seeking to force the Government to proceed with the second part of the Leveson inquiry after Ministers suggested it was on the brink of being dropped. Maria Eagle, shadow Culture Secretary, accused David Cameron of breaking a promise to set up an examination of misconduct in the press and police, which was due to follow the completion of criminal investigations triggered by the phone hacking scandal. Today Eagle said Cameron is “reneging on this promise as though he […]

    Read more →
  • News Striking doctors fight imposition of contracts but Labour “neutral” on walkout

    Striking doctors fight imposition of contracts but Labour “neutral” on walkout

    The head of the body representing NHS Trusts sparked fury by urging Jeremy Hunt to override the views of striking doctors and impose on them the controversial new contracts. Chris Hopson, chief executive of NHS Providers, called for a tougher government approach as around 37,000 medics joined the 24-hour walk-out at 8am today. He spoke out as Labour again condemned the “utter shambles” which led to the strikes, now in their second wave. Hopson urged the Department of Health to […]

    Read more →
  • Comment Labour must be bolder than the Tories on devolution

    Labour must be bolder than the Tories on devolution

    The launch last week of the new Centre for Cities report Cities Outlook 2016 brought another stark reminder that most cities in the North and Midlands are continuing to punch below their weight economically – with wages in most places north of the Watford Gap falling below the national average, while welfare spending is higher. In Hull, for example, average weekly wages amount to just £376, compared to £539 in Milton Keynes, and £591 in Reading. Even in Manchester – […]

    Read more →
  • Comment Featured PMQs Verdict: Corbyn shows his passion for housing, despite his relaxed approach

    PMQs Verdict: Corbyn shows his passion for housing, despite his relaxed approach

    Jeremy Corbyn cares about housing. This is obvious. But does he care much about PMQs? At his first meeting of the Parliamentary Labour Party (PLP) as leader, he told MPs that housing would be one of his biggest priorities. Shortly after that, he made the Shadow Housing minister a Shadow Cabinet role, and in John Healey appointed a well-respected figure across the party to the brief. Only last week, the party launched a review, the biggest of its kind in […]

    Read more →
Share with your friends










Submit